Bank of America just raised its EUR/USD forecast
Investing.com - Barclays (LON:BARC) raised its price target on Fabrinet (NYSE:FN) to $329.00 from $234.00 on Tuesday, while maintaining an Equalweight rating on the optical manufacturing company’s stock. The company, with a market capitalization of $11.66 billion, has seen its stock surge nearly 49% year-to-date, according to InvestingPro data.
The price target increase follows Fabrinet’s better-than-expected performance on both top and bottom lines, with first-quarter revenue guidance exceeding consensus estimates at the midpoint. The company has demonstrated robust growth with revenue increasing 17.14% over the last twelve months, while maintaining a "GREAT" financial health score according to InvestingPro’s comprehensive analysis.
Barclays noted that optical demand continues to show strength, with the company’s High Performance Computing (HPC) business expected to ramp up into fiscal year 2026, despite slower Datacom performance anticipated in the first fiscal quarter.
The new price target represents a multiple of 24 times Fabrinet’s projected fiscal year 2027 earnings per share of $13.70, compared to the previous target based on 20 times fiscal year 2026 earnings per share of $11.68.
Barclays justified the higher multiple by citing strong revenue opportunities with several new customers and anticipated strength from the 1.6T transition in optical networking technology.
In other recent news, Fabrinet reported its fourth-quarter 2025 earnings, achieving an earnings per share (EPS) of $2.65, which slightly surpassed analysts’ expectations of $2.64. The company’s revenue also exceeded forecasts, reaching $910 million compared to the projected $883 million. These results highlight Fabrinet’s ability to perform above market expectations. Despite the positive earnings and revenue figures, the company’s stock experienced a slight dip in after-hours trading. This nuanced market reaction indicates varied investor sentiment following the earnings announcement. The earnings call did not mention any significant mergers or acquisitions. Analysts have not provided any recent upgrades or downgrades for Fabrinet. These developments reflect the company’s current financial standing and market perception.
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